Rate Cuts Canada 2025 Budget. Today’s new rate is a whole 2% lower than what the peak overnight interest rate was at 5%, before the boc started cutting rates last june. Forecasters expect the bank of canada to speed up the pace of interest rate cuts and lower its policy rate by half a percentage point this week.
Under the baseline scenario of no tariffs, two more cuts of 25 basis points cuts are expected in 2025 to bring the policy rate to neutral at 2.5 per cent by the end of the year. “in both scenarios, the bank of canada would cut its policy rate to support growth and look through the.
